Which of the Following Statements About Economic Systems Is NOT

question 378

Multiple Choice

Which of the following statements about economic systems is NOT true?

• A) Government has less of a role in market-directed economies than in command economies.
• B) A market-directed economy self-adjusts through producer and consumer choices.
• C) Producers always make a profit in a market-directed system.
• D) A command economy is more likely to work if the variety of goods and services is small.
• E) Both market-directed and command economies need a macro-marketing system.

---

Definitions:

Fair Value Method

An accounting approach used to assess and report the value of certain assets and liabilities at their current market prices.

Cost Method

An accounting approach used to value inventory or investments based on the original purchase cost, without adjusting for market changes.

Foreign Exchange Rates

The value at which one currency can be exchanged for another.

Political Conditions

The current state of the government and political climate that can affect economic and business environments.